Half the fun of a next-generation
console comes from the furious rumormongering that precedes its
arrival, and the Microsoft Xbox 360 has been no exception. But
with the Xbox 360's release date now only three months away,
it's time to revisit the platform and see which rumored features
have been confirmed, which have been shot down, and which remain
firmly in the realm of speculation.

Confirmed: what we know
Pricing and bundling: On August 17, Microsoft confirmed that its
next-generation console will launch in two flavors: a $299
edition that comes with one wired controller, a detachable
faceplate, and standard A/V cables; and a souped-up $399 version
that ships with a 20GB hard drive, a wireless controller, a
wireless headset, a limited-edition wireless Media Center
remote, and HD-capable component A/V cables. Both SKUs will
include a basic Xbox Live Silver membership.

Hardware: In addition to an IBM PowerPC-based CPU running at
3.2GHz and 0.5GB of RAM, the 360 sports a customized ATI
graphics processor capable of advanced antialiasing and shader
effects. What that technical jargon means, in practice, is that
the new Xbox will have the processing power to deliver true 720p
and 1080i wide-screen HDTV images for all of its games (by
contrast, most games for the original Xbox maxed out at a
DVD-level 480p). Multichannel surround sound is also standard,
and the 360 natively supports up to four wireless controllers to
cut down on cable clutter.

DVD vs. Blu-ray: The Xbox 360's optical drive is a standard DVD
model. While using tried-and-true DVD technology may keep costs
down, it also limits the games to just 8.5GB of space--that's
pretty tight for high-def cut-scenes. By contrast, the
PlayStation 3 will use a next-generation Blu-ray drive, which
means more space for games (at least 25GB per disc) and
compatibility with one of the competing high-def movie formats
vying to replace DVD. Rumors persist that the 360 will get an
HD-DVD drive at some point, but with Microsoft on an aggressive
four-year console upgrade schedule, we're likely to see the
third iteration of the Xbox (November 2009?) before we see a
"360.1" with HD-DVD.

Appearance: The new Xbox is notably smaller and more curvaceous
than its brutish predecessor. The front panel is dominated by an
oversize power button, but the look and feel can be customized
with a variety of interchangeable faceplates. Furthermore, the
Xbox 360 can be mounted vertically or horizontally, à la the
PlayStation 2.

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Multiplayer: The success of the current generation of Xbox Live
has led Microsoft to expand and enhance the next generation of
the broadband online service. It will now be available in Silver
and Gold tiers, with the former offering limited functionality
to all Xbox 360 users and the latter continuing the premium
services Xbox Live users currently enjoy. But the big step up is
the Xbox Live Marketplace, which will serve as an online launch
platform for downloading value-added content, such as new demos,
levels, maps, and skins. Don't expect giveaways, however;
Microsoft and third-party publishers will be looking to monetize
Xbox Live beyond the flat yearly fee.

Launch titles: During the Xbox Summit that took place in Japan
at the end of July, Microsoft announced what appears to be a
final list of launch titles, which the folks at 1up.com
dutifully translated. It's still unclear which games will be
launching in which country, however, and some titles appear
quite loosely translated, to say the least.

Peripherals and accessories: Assuming the 360 is priced to move,
expect Microsoft to make up for lost profits on the console
itself with a procession of must-have accessories. In addition
to video connectivity upgrades (see bundling details below), the
company has confirmed that several first-party accessories are
on the road map: a wireless network adapter, a memory card, an
EyeToy-style video camera, and (of course) additional wired and
wireless controllers and Xbox Live headsets.

Nongaming capabilities: The Xbox 360's built-in ability to serve
as a Media Center Extender will let users stream digital video,
audio, and photos from networked PCs running Windows XP Media
Center Edition. Microsoft is also promising the "ability to
stream media from portable music devices, digital cameras, and
Windows XP-based PCs." Last but not least, the 360 will double
as a CD/DVD player.

Rumor and speculation: what we don't know
Availability: Microsoft recently reaffirmed a holiday 2005
release date for the Xbox 360, with the console scheduled to hit
North America, Europe, and Japan sometime in the fourth quarter.
Specific dates are still up in the air, but don't be surprised
if it's around November 15--the fourth anniversary of the
original Xbox hitting stores.

Backward compatibility: Microsoft pledged that the 360 would be
compatible with top-selling Xbox games. That caveat--and the
lack of subsequent official information from Microsoft--has led
to considerable speculation as to what titles will and won't
work on the 360. The problem is trying to get software designed
for the Intel/Nvidia architecture of the original Xbox to run on
the IBM/ATI hardware of the 360. The rumor mill indicates that
Microsoft is making good progress in ironing out the legal and
technical details related to backward compatibility. Let's hope
it's true; no one wants to keep their old Xbox in the A/V rack
just to play Halo.

Bells and whistles: One of the latest Xbox 360 rumors is that
the console's controllers will accept QWERTY-style keyboard
attachments. The evidence behind this conjecture amounts to some
camera phone-quality pictures of overseas technical
presentations, so you'll want to take this news with a grain of
salt.

The bottom line
The Xbox 360 is by far the most fleshed-out of the
next-generation consoles. We know how much it'll cost, when
it'll be available, and what games will be playable at launch;
unfortunately, since we still know so little about its
next-generation competitors, it's hard to definitively weigh in
on which machine will reign supreme. That said, screenshots from
Xbox 360 titles such as Ghost Recon: Advanced Warfighter look
absolutely stunning, leading us to believe that the Xbox 360
will likely be a worthwhile investment, if an expensive one.